Business Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Operating segments are defined as components of the Company for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The temporary and consultant staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting and internal audit services segment provides business and technology risk consulting and internal audit services.

The accounting policies of the segments are set forth in Note A—Summary of Significant Accounting Policies. The Company evaluates performance based on income from operations before net interest income, intangible amortization expense, and income taxes.

The following table provides a reconciliation of service revenues and segment income by reportable segment to consolidated results (in thousands):

	Year Ended December 31,
	2020		2019		2018
Service revenues
Temporary and consultant staffing	$	3,477,335	$	4,412,125	$	4,330,566
Permanent placement staffing	370,109		533,432		511,989
Risk consulting and internal audit services	1,261,556		1,128,875		957,716
	$	5,109,000	$	6,074,432	$	5,800,271
Segment income
Temporary and consultant staffing	$	237,279	$	410,153	$	404,800
Permanent placement staffing	28,799		83,885		90,801
Risk consulting and internal audit services	155,680		127,713		93,324
Combined segment income	421,758		621,751		588,925
Amortization of intangible assets	1,219		1,361		1,705
Interest income, net	(1,343)		(5,125)		(4,382)
Income before income taxes	$	421,882	$	625,515	$	591,602

Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between temporary and consultant staffing segment and risk consulting and internal audit services segment were $240.0 million $172.4 million and $132.4 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Assets by reportable segment are not presented as the Company does not allocate assets to its reportable segments, nor is such information used by management for purposes of assessing performance or allocating resources.

The Company operates internationally, with operations in North America, South America, Europe, Asia and Australia. The following tables represent revenues and long-lived assets by geographic location (in thousands):

	Year Ended December 31,
	2020		2019		2018
Service revenues (a)
Domestic	$	3,984,742	$	4,708,715	$	4,433,767
Foreign (b)	1,124,258		1,365,717		1,366,504
	$	5,109,000	$	6,074,432	$	5,800,271
	December 31,
	2020		2019		2018
Property and equipment, net
Domestic	$	88,117	$	99,365	$	96,169
Foreign	21,700		29,020		29,007
	$	109,817	$	128,385	$	125,176

(a) There were no customers that accounted for more than 10% of the Company’s total service revenues in any year presented.

(b) No individual country represented more than 10% of revenues in any year presented.